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Viktor [21]
3 years ago
5

. AEC Company issues common stock that is expected to pay a dividend over the next year of $2 at a stock price of $20 per share

today. If its WACC is 12% and the company is financed by 30% debt and 70% equity, calculate the expected growth rate of dividend (=g), given the cost of debt is 5% and tax rate is 0%?
A) 5.0%

B) 7.0%

C) 9.0%

D) 12.0%
Business
1 answer:
8090 [49]3 years ago
4 0

Answer:

A) 5.0%

Explanation:

AEC Company expects to pay a dividend over the next year of $2 at a stock price of $20 per share, thus the dividend rate over next year = $2/ $20 = 10%

The WACC is 12%, the company is financed by 30% debt and 70% equity, and the cost of debt is 5%;

WACC 12%= 30% x cost of debt 5% + 70% x cost of equity  

->Cost of equity = (12% -30%*5%)/70% = 15%

Thus expected growth rate of dividend = Cost of equity 15% - dividend rate over next year 10% = 5%

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What is progressive tax and what is it based on?
kozerog [31]

A progressive tax takes a larger percentage of income from high income groups than from low income groups and is based on the concept of ability to pay.

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3 years ago
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There were a total of 90 people in the households, 10 of the people were children under 16, 10 of the people were retired but st
Vlad1618 [11]

Answer:

The unemployment rate is 42.85.

Explanation:

The formula to calculate the unemployment rate is:

Unemployment Rate = (Unemployed People / Total Labor) x 100 -- (1)

where total labor is the sum of the unemployed people and employed people.

Unemployed People = 10 Retired persons + 5 stay-at home parents + 10 persons with no job + 5 persons who wanted job

Unemployed People = 30

Labor Force = Employed people + Unemployed people

Labor Force = 40 + 30

Labor Force = 70

Putting the values in equation 1,

Unemployment Rate = ( 30/ 70) x 100

Unemployment Rate = 42.85

7 0
3 years ago
Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an org
notsponge [240]

Answer: Promotion

Explanation:

 The promotion is one of the important business strategy that helps in spread the awareness among the customers or users about the various types of brands and products by an organization.

The main objective of a promotion is to communication with the consumers so that they can aware about the various types of new brands and the product in the market as it helps in increase the probability of the business.    

 According to the given question, the communication helps in maintaining the relationship with the customers and the audience in an organization that helps in accept the products positively. Therefore, promotion is the correct answer.  

5 0
3 years ago
Let $S$ be the set of complex numbers of the form $a + bi,$ where $a$ and $b$ are integers. We say that $z \in S$ is a unit if t
lakkis [162]

Answer:

Number of units possible in S are 4.

Explanation:

Given <em>S</em> is a set of complex number of the form a+bi where <em>a</em> and <em>b</em> are integers.

z\in S is a unit if w\in z exists such that zw=1.

To find:

Number of units possible = ?

Solution:

Given that:

zw = 1

Taking modulus both sides:

|zw| = |1|

Using the property that modulus of product of two complex numbers is equal to their individual modulus multiplied.

i.e.

|z_1z_2|=|z_1|.|z_2|

So,

|zw| = |1|\\\Rightarrow |zw| =|z|.|w| =1\\\Rightarrow |z|=\dfrac{1}{|w|}......... (1)

Let z=a+bi

Then modulus of z is   |z| = \sqrt{a^2+b^2}

Given that a and b are <em>integers</em>, so the equation (1) can be true only when |z| = |w| =1 (Reciprocal of 1 is 1). Modulus can be equal only when one of the following is satisfied:

(a = 1, b = 0) ,  (a = -1, b = 0), (a = 0, b = 1) OR (a = 0, b = -1)

So, the possible complex numbers can be:

1.\ 1 + 0i = 1\\2.\ -1 + 0i = -1\\3.\ 0+ 1i = i\\4.\ 0 -1i = -i

Hence, number of units possible in S are 4.

6 0
3 years ago
Jackson Co. began the year with $20,000 in inventory. During the year, the company purchased $80,000 worth of inventory. At the
Irina-Kira [14]

Answer:

The total cost of goods sold  = $70,000

Explanation:

Given:

Initial inventory at the start of the year for Jackson Co. = $20,000

Total cost of purchases made during the year = $80,000

Inventory remaining at the end of the year = $30,000

Solution:

Total inventory for Jackson Co. during the year = \$20,000+\$80000= \$100,000

Inventory remaining at the end of the year = $30,000

The cost of the goods sold can be calculated by subtracting the remaining  inventory from the total inventory.

Thus, cost of goods sold can be given as :

⇒ \$100,000-\$30,000

⇒  \$70,000

The total cost of goods sold  = $70,000

8 0
3 years ago
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